Mobile commerce and commuters drive sales at discount etailer, BrandAlley

New breed of shopper - commuters - are buying via m-commerce

New breed of shopper – commuters – are buying via m-commerce

Private sales etailer has announced a 20% growth in revenue for the first half of the year to £14m, with the advent of mobile reported to be boosting growth.

According to the company, its private sales model, launched into the UK four years ago, is more popular than ever with millions of members engaging with and shopping on the site. M-commerce is providing even more opportunities for members to shop BrandAlley’s five daily sales, it adds.

BrandAlley chief executive Rob Feldmann said: “We are very pleased with our results so far this year in what continues to be a difficult market. We are reaching a critical point in our growth heading towards a profitable business with strengthening margins and the best variety and quality of sales for our loyal customers.”

The average basket size across all transactions is reported to have grown 21% this year to £76.00. According to BrandAlley, this reflects the higher quality of sales it is now able to offer customers through its strong relationships across fashion, beauty and homeware brands.

Feldmann said: “The private sales model was a complete unknown when we first launched and we have really opened up a new way of shopping for the online shopper and a profitable way for brands to sell their stock. We now see strong growth coming through mobile with many customers shopping on the site on their way into work to avoid missing popular sales.”

BrandAlley launched its mobile site in February 2012, creating a revenue stream set to be worth over 20% of sales this year. Over a million shoppers are reported to have regularly visited the new mobile site and are a more engaged customer; staying longer on site, visiting more pages and spending more.

BrandAlley said m-commerce has created a new breed of shopper; the commuter shopper, who is shopping between 7am and 9am on the bus or train on the way into work. A growing number of BrandAlley customers are also now shopping on their i-Pads as they relax at home, bringing a second spike in traffic each day from 7pm. This shopper is the highest spender with the largest average basket size, the company said.

Further growth areas have come from the newly launched Outlet which BrandAlley launched this year. Outlet offers a permanent discounted catalogue online. BrandAlley has also launched Deal of The Day for brands that have one hero product to sell in large volumes.

During some of the heaviest rain in June BrandAlley said it saw a 60% increase in unique visitors as the wet weather kept shoppers indoors and online. BrandAlley is now expecting a significant uplift in sales during the Olympics particularly from the London workforce who will be working from home to avoid long commutes.